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It distributes approximately 70% of total revenue to rights holders, who then pay artists based on their individual agreements.Spotify has faced criticism from artists and producers including Taylor Swift and Thom Yorke, who argued that it does not fairly compensate musicians.As of May 2018, it had 170 million monthly active users, including 75 million paying subscribers.Unlike physical or download sales, which pay artists a fixed price per song or album sold, Spotify pays royalties based on the number of artists' streams as a proportion of total songs streamed.These advertisements vary in size, type and user engagement.Starting in March 2009, Spotify offered music downloads in the United Kingdom, France, and Spain.Spotify is a freemium service; basic features are free with advertisements or limitations, while additional features, such as improved streaming quality and music downloads, are offered via paid subscriptions.Spotify is available in most of Europe, most of the Americas, Australia, New Zealand, and parts of Asia.
Spotify offers advertisers ten different types of advertising formats, described in 2016 as: Branded Moments, Sponsored Playlists, Sponsored Sessions, Video Takeovers, Audio, Display, Overlay, Homepage Takeovers, Branded Playlists, and Advertiser Pages.
The company pays 70% of its total revenue to rights holders.
Spotify for Artists states that the company does not have a fixed per-play rate, instead considers factors such as the user's home country and the individual artist's royalty rate.
In December 2013, the company launched a new website, "Spotify for Artists", that explained its business model and revenue data.
Spotify gets its content from major record labels as well as independent artists, and pays copyright holders royalties for streamed music.